Sp 500 Closes Another Week In Green

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Sp 500 Closes Another Week In Green

S&P 500 Closes Its 7th Week In Green, Outlook Remains Bullish

The S&P 500 index remained flat during Friday's session, but that's not the main news. What really matters is that the S&P 500 has closed its 7th week in green, making it one of the best winning streaks that was only last seen in 2017.

The bullish optimism in the S&P 500 has cooled down a little after the NY Fed President poured cold water over talks about rate cuts. Despite this minor setback, the sentiment remains bullish for the S&P 500 & other US indices.

However, the stocks from the utilities and the real estate sector didn't react positively to the Fed statement and ended up giving back some of their gains.

Rumors Of Rate Cuts Support S&P 500

The surge in the US stocks was seen as the Fed's statement that interest rates will start to go down in 2024. In general, a low-interest rate environment is suitable for the stock markets, while a higher interest rate favors the currencies. Now that there are talks about rate cuts, it is only natural for the S&P 500 to print consistent gains.

If we look around, the DJIA also delivered one of its best daily closes on Friday. In addition, the semiconductor stocks from the USA also closed one of their best weeks in almost 6 - 7 months.

According to an expert from Bokey Capital Partners, the Fed believes that there's no good reason to keep the rates higher. After all, high-interest rates punish the economy & that's exactly what we are seeing from the recent PMI readings.

Another thing that points to further upside in the S&P 500 is the year-end bullish rally. Normally, such rallies are seen in most of the stock indices, and there's no reason to say that it won't happen this time.

If we look at the weekly closes, the S&P 500 closed near 4714 while the DJIA closed at 37276. Similarly, the Nasdaq Composite gained 0.25% and closed near 14798.

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